Higher costs eating into Maltapost’s profits total

Maltapost’s profit before tax has been halved, to €796,000 in the six months up to March from €1.69 million in same period last year.

Traditional mail volumes are still on the decline, in line with trends across the world

The company said its revenue streams had been impacted by the considerable increase in direct mail costs due to changes in tariffs regulated by the Universal Postal Union.

Maltapost said it was working closely with the Malta Communications Authority to ensure a fair regulatory approach “which is appropriate and relevant to the challenging and dynamic competitive market in which it operates”.

The company had concluded acquisitions of key properties, including its head office in Marsa and other strategically located properties.

Turnover increased by 3.1 per cent to €11 million (2011: €10.7 million). Traditional mail volumes were still on the decline, in line with worldwide trends, Maltapost said.

However, this was compensated by an increase in revenue from cross-border traffic despite the changein the UPU-determined tariff structure. Other non-postal revenue also contributed positively to the increase in turnover.

Maltapost’s board of directors said it was confident the company had the necessary human, technical and financial resources to provide the best possible range of services to the community, while continuing to deliver a fair return to its shareholders.